Cape Wind financing takes big first step

Cape Wind has completed a milestone toward securing its financing by signing the Bank of Tokyo-Mitsubishi UJF to coordinate debt financing for the project.

ARIEL WITTENBERG

Cape Wind has completed a milestone toward securing its financing by signing the Bank of Tokyo-Mitsubishi UJF to coordinate debt financing for the project.

The bank will provide a significant amount of debt capital to the 468-megawatt offshore wind farm as well as help Cape Wind find other lenders.

"We have been impressed with Cape Wind's dedication and perseverance in moving this clean energy project through the regulatory and development process, and are glad to be able to assist this financing," Project Finance Director of BTMU Takaki Sakai said in a statement.

Cape Wind spokesman Mark Rodgers said the arrangement helps advance the project toward its goal of completing its financing by the end of this year.

The project has sought not only debt partners but also equity partners to invest in the wind farm in exchange for becoming partial owners. Siemans Wind Power, which will provide the turbines for the project, is a potential equity partner, Rodgers said.

Cape Wind is relying on Barclays as its sole financial adviser to help find debt and equity partners.

In addition to corporate lenders, the project has submitted an application to the U.S. Department of Energy for funding.